EIGHT STEPS TO START A BUSINESS

 

There are many details involved in starting a business.  The process can be daunting. Below are eight “big” steps, each with its own list of “baby” steps.  This is by no means an exhaustive list, but it includes the steps most start-ups must take. Check them off if they are done and work your way down the rest of the list  

 

RESEARCH,  PLAN, TEST, EVALUATE AND EXECUTE

Choose a business based on your skills and interests.
Assess your strengths and weaknesses.
Develop clear business and financial goals.
Research the business idea:
  1. Who will buy it and how often?
  2. Who also sells it or something like it?
  3. How big is the market?   What segment will you target?
  4. Who is the competition?
  5. What are the legal and licensing compliance requirements?
  6. What will it cost to produce, advertise, sell and deliver the product or service?
  7. What price can you charge? What is the markup?  How much do you need to sell to make a profit?
What resources are required to launch and build the business
  1. People
  2. Capital
  3. Machinery, Equipment
  4. Stock
  5. Office, Supplies

 

WRITE A BUSINESS PLAN

What kind of team needs to be recruited?
What is the mission of the business?
Describe the product or service
  1. How will I package it?
  2. How will I price it?
  3. How will I distribute it?
  4. How will I promote it?
How will you position the company and products vis-ŕ-vis the competition?
What will be your distinctive competitive advantages?
What financial resources are required?
What are the risks?
What are the start-up costs?
How long will it take to reach profitability?
What is the exit strategy?
What is the return on investment?

   

CHECK AND RESERVE THE NAME OF THE BUSINESS

Choose the name of the business.
Verify the availability of the name selected.
Research and test the effectiveness of the name.
Reserve or register the name-  a unique name can only be applied for under a company structure.
If an internet web site is being acquired apply for the unique domain name.

   

CHOOSE LEGAL STRUCTURE AND FILE ORGANISATIONAL PAPERS

Decide whether to organize as a Sole Proprietorship, Partnership or Company.
Apply for taxation IRD Numbers, and GST and Employee registration with the Inland Revenue Department if applicable.

   

SECURE REQUIRED PERMITS AND LICENCES

Required Public Notices   e.g Liquor Licences, Notice for Taxi driver.

   

SECURE AND PROTECT INTELLECTUAL PROPERTY

Copyrights.
Trademarks.
Patents.
Legal Agreements.

   

PREPARE MARKETING PLAN AND SALES MATERIALS

Business cards.
Stationery.
Flyer/ Brochure.
Press Release.
Web Site.
Email contact list.
Advertisements.
Promotional items.
Networking events
Tradeshows

   

SET UP AND MANAGE BUSINESS OPERATIONS

Choose the location of your business.
  1. Home-based business considerations.
  2. Office location considerations, lease negotiations.
  3. Zoning and signage considerations
Order Phone, Fax, Email
Order Office Equipment, Supplies
Order Fixtures, Signage, Stock
Open Business Bank accounts
  1. Cheque Account.
  2. Savings Account
  3. Credit Card
  4. Money Market
  5. Line of Credit
Obtain Insurance
  1. Business- on Assets, Income Protection, Liability.
  2. Health.
Accounting System.
Retain professional team
  1. Select a Lawyer.
  2. Select an Accountant.
  3. Select a Banker.
  4. Select an Insurance Agent.
  5. Select Directors if a company.
Association Memberships, Subscriptions.
File all IRD Returns

 

   

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